Qualcomm shares $QCOM (+0.34%) fell 6% on Wednesday after the company announced new financial targets for its non-smartphone businesses. The key to the success of Qualcomm's diversification plans likely lies in how quickly and broadly artificial intelligence technology is shifting from data centers to individual devices.

Both Qualcomm and Apple hope that AI-enabled smartphones will lead to growth in the mobile device market. According to market research firm International Data Corporation, global smartphone shipments fell by 3.2% in 2023. However, Deloitte expects smartphone shipments to grow by 5% this year, followed by further growth of 7% next year. By 2025, AI-enabled smartphones are forecast to account for more than 30% of total shipments.